It is common for seniors to feel overwhelmed when legal letters start arriving, but for someone in your father’s specific situation, the news is generally reassuring. Because your father’s income and assets are limited, he is likely what the law calls “judgment proof.” This means that even if a creditor wins in court, they legally cannot take his money. Here is why he should appear but skip the bankruptcy.
1. Do Not Ignore the Court (Even if he has nothing)
Ignoring a court summons is rarely a good idea. If he doesn’t show up for the virtual hearing:
- A default judgment will likely be entered against him. This means the creditor automatically wins.
- Bank accounts could be frozen. Even if the money inside is “exempt” (protected), it is a massive headache to get a bank to unfreeze an account once a judgment is active.
- The debt grows. Interest and legal fees get tacked on, making a small debt balloon over time.
Better move: He should appear virtually. He can state clearly to the judge: “I am a senior citizen. My only income is SSI and a union pension, and I have no assets.” This often leads to the creditor realizing there is no money to collect and stopping their pursuit.
2. Why Bankruptcy is Likely Unnecessary
Bankruptcy is a tool used to protect assets or stop wage garnishment. Since your father has neither, filing for bankruptcy might be an expensive and unnecessary “fix.”
- Costs money: Filing fees and attorney costs can be high.
- No benefit: Since his income is already legally protected (see below), bankruptcy wouldn’t “save” anything he isn’t already keeping.
- Privacy: Bankruptcy is a public record. If he is “judgment proof,” he can achieve the same protection for free just by being honest about his finances.
3. His Income is “Safe” Under New York Law
New York has some of the strongest protections in the country for seniors through the Exempt Income Protection Act (EIPA). As of 2026, the rules are:
- SSI is 100 percent protected: By federal law, creditors cannot touch Supplemental Security Income.
- Pensions are protected: New York law generally prohibits creditors from garnishing private or union pensions.
- The Bank account “floor”: In New York, if an account receives direct-deposited Social Security or pension benefits, the first $4,080 for residents in NYC, Long Island, and Westchester/$3,840 for the rest of the state (this amount adjusts for inflation) is typically “untouchable” by a debt collector. They cannot even freeze the account if the balance is below that amount.
4. What Should He Do?
Instead of filing for bankruptcy or hiding, take these proactive steps:
| Step | Action |
|---|---|
| 1. Show Up | Attend the virtual hearing. Use a phone or computer. If he isn’t tech-savvy, a family member can help him log in. |
| 2. Send a “Judgment Proof” Letter | Send a letter to the creditor’s attorney stating that his income consists only of SSI and a pension and that he has no assets. This often gets them to drop the case. |
| 3. Keep Funds Separate | Ensure his SSI and pension go into an account that only holds that money. Do not mix it with money from other people or sources, as that can make it harder to prove it’s exempt. |
Free Help in New York
Your father can get free legal advice specifically for seniors or low-income residents regarding debt.
- NY CourtHelp: Visit nycourts.gov/courthelp.
- The Legal Aid Society: They have specific units for consumer debt and seniors.
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